Palo Alto Networks on Wednesday announced the acquisition of IoT security firm Zingbox for $75 million in cash, and made public its financial results for the fiscal year 2019.
Zingbox provides a cloud-based lifecycle management solution that uses AI and machine learning technologies to identify, secure and optimize devices.
By acquiring Zingbox, Palo Alto Networks hopes to improve the IoT security capabilities of its Next-Generation Firewall and Cortex platforms in an effort to help customers improve IoT visibility and security.
“Our vision has always been to ensure that organizations realize the full benefits of IoT devices without sacrificing security. By joining forces with Palo Alto Networks, we will be able to secure connected devices at scale to help organizations embrace digital transformation,” said Xu Zou, CEO of Zingbox.
Zingbox products will continue to be available to customers even after the acquisition is completed. The IoT security firm’s co-founders will be joining Palo Alto Networks.
Palo Alto Networks has acquired several companies in the past year, including Twistlock, PureSec, Demisto and RedLock.
Palo Alto Networks on Wednesday also announced that its total revenue for Q4 2019 increased 22 percent, compared to the same quarter of the previous fiscal year, to $805.8 million. Fiscal year 2019 revenue grew 28 percent to $2.9 billion.
However, the company reported a net income loss of $20.8 million for Q4 2019, while the net loss for the entire year was $81.9 million.
“We had a strong fourth quarter, surpassing a billion dollars in billings within the quarter for the first time, and achieving approximately 180% year-over-year growth in our newer Prisma and Cortex offerings,” said Nikesh Arora, chairman and CEO of Palo Alto Networks. “This year we acquired and released important new technologies and built a robust go-to-market framework for driving their success in the market. It’s gratifying to see all the team’s hard work translate into strong market results.”
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